Global Economy 4848 Responses

The Amount of US dollar notes in circulation is massive and increasing exponentially. The US' debt is rapidly increasing, which people believe will make the US dollar worthless, and given Americas involvement with world trading and business this will cause massive consequences for all countries and currencies.

Vince Cable (Lib Dem Business Secretary) -http://www.guardian.co.uk/politi…"The political class as a whole is not preparing the public for how massive the problem is."

Experts also say that quantitative easing (putting more cash in circulation) has never ever helped or been proven to work in any economy ever.

Now I'm no paranoid conspiracy theorist, nor do i believe everything i read, and usually these theories never amount to anything, but when the worlds leading authorities on economics are saying were fucked, I'm pretty concerned.

"Experts also say that quantitative easing (putting more cash in circulation) has never ever helped or been proven to work in any economy ever."

They are modeling this after Japanese economy. If there was no QE, everything would fail in a systematic fashion. Much like the great depression. It was design to ease the down turn and failure. More la se faire economist would tell you that this doesnt work but without this, global economy would just stop. Billions without jobs.

the only difference between 1911 and 2011 is the consumer is better informed. No entity exists to protect the consumers interest. Yet entities continue to exist for the interest of the company.

It's not worth fearing, the only reason we care, is because we know. It's so far removed from the hands of the average citizen, I firmly believe there is no "hope" for anyone alive today. We are cogs in a system. I'd say the best course of action is to put that self aware brain of yours to work and get to work on a million dollar project.

I was discussing this sentiment this morning. for an individual in their mid 30's the amount of money needed at retirement is over 3 million dollars. The cost of tuition for a 4 yr old to go to college will be about $300,000.

I dont think consumers are better informed. They have the same mentality. If they were better informed, no one would buy in to predatory mortgages (not reading the contract or agreement). Everyone is looking for easy buck. I remember a friend of mine was complaining that he was a "victim" of the banks. I asked if he read the contract and agreement. He said "No. Why should I? I am the victim here" I asked to bring the contract. And it is in the first line "interest rate will increase to 15% after 2nd year" and "failure to make payment will increase rate to 35%" He lived in his place for 10 months without paying. He complains that he didnt get his fair share.

This is moronic.

having access to better information doesn't always lead to better decisions. they are better informed though– registe1/2

Whenever there is a perception the system isn't working there is always going to be a group of people who advocate for doing something radically different even if their ideas are more or less unproven. In this case the Ron Paul/ Austrian economics crowd who are pretty much betting on the system collapsing with investments in gold and silver etc.

The advantage of being a critic from the sidelines like this though is that you can never be proven wrong. It may well be that our economic system is headed for collapse but that could be in spite of everything that has been done rather than because of it. The real culprits could simply be globalization and transformation of the economy rather than the fiat money system or central banking being inherently unsustainable. Its easy to criticize the Fed but hard to criticize globalization even though its an inherently destabilizing trend.

Alan Greenspan was proven wrong and he admitted that he was wrong.– JSK

Its not in the best interests of other countries to have the dollar drop. They'd take a hit losing exports. So should be fine to keep up this imaginary game of value and wealth. Or at least until the big boy nations decide to play manifest destiny

Lose of US dollar value is nothing to do with import from other countries.

The main scare is (to other countries and US) that no one would buy debt from US Govt. China, who holds most of US debt has started to reduce its holdings. US Currency has been used as a foreign for most countries but they are reducing it. If no one is buying US debt, US can no longer borrow money regardless to debt ceiling.

everything to do, value of our dollar is in direct relationship to the value declared through customs– registe1/2

Babylon fell. Rome fell. The Ming dynasty fell. On a long enough timeline what your concerned about is inevitable and the truly enlightened person doesn't really give a shit. But go on and peddle your fear to the rubes if it let's you sleep at night.

I think even the 'truly enlightened' Greeks are giving a shit right now..– SteveZissou

I think the world would be a better place if people lost the ability to buy the latest iPhone every damn release!

...but seriously, the debt is just insane.

People don't throw good money after bad forever, but get really turned off by the idea when the currency they're holding is devaluing fast (like our savings), China is already pissed...where's all the welfare and healthcare coming from when the credit dries up?

Hopefully we won't be battling it out in the thunderdome next week, but I think things are gonna have to change a lot, and dramatically if the pressure keeps building.

Us 1st worlders don't like to go without even HD TVs, let alone the important stuff, so it could get rough.

Oh!! The debt, the debt !!Debt is not a measure of value, it is measure of who has something and who does not.If I have a million dollars in the bank, the bank owes me a million dollars. If the world has borrowed 50 trillion dollars, and is 50 trillion dollars in debt, then someone somewhere is 50 trillion dollars up (even if they are nervous about getting it back). None of the value is created or destroyed... is it possible that everyone in the world could be drowned by debt ? No - the richest 1% of the world have amassed the value created in the last 50 years at 1000 times the rate everyone else has, and suddenly we're all up to our eyes in debt. To them ?Default on a mass scale. Anyone who owns more than 100million dollars is subject to a one-time pay-to-play fee leaving them with only 100million dollars. They need to understand that amassing wealth cannot permit a hoarding of influence over everyone else in proportion to that wealth. We all live here, you can't take all the toys, place nice.Or we'll fucking hang you - read your history.This is the only course open to maintain Civilisation.

Look at devaluation of currency in larger countries or even smaller countries. Russia triggered massive economic down turn. Asian financial crisis did the same.

They were both bailed out by the western countries. Now that the western countries are in the down, there really is no one willing to help. China is just hoarding for themselves (gold, natural resources etc).

Devaluing currency is fine for short term but long term, the devaluation can take an accelerated pace.

The US is playing the same game as what the big banks did. "Too big to fail". US feels that if they fail, the global economy will pretty much fail and it has been failing. China will lose it's biggest export partner.

My rant is more to do with the transfer of value. The richest people have got richer during this recession. The govt is trillions of dollars short on what it needs, tax cuts have left a huge hole in the budget, and everyone else is expected to either suffer cuts in services (for which they have paid). The collapse precipitated by deregulating financial instruments like derivatives was political negligence, as was the tax cuts for the rich that have ground our faces into the dirt and leave us on the brink of who-knows-what. Meanwhile, those people who benefited from the tax cuts are also those who benefited from the collapse. There has been a massive transfer of wealth upward, and I for one will eat bread and drink water and live without electricity if it meant that it would bring those fuckers down too. I'd eat shit and live in a burning, lawless urban dystopia if it meant that there wasn't an orchestrated band of cunts scheming and benefiting from my misery.

but is it wrong if they game the system, and do it legally?– deathboy1/10

it depends if you believe it's ethical to act politically and create a system that 'transfers value without permission.'.– mikotondria32/10